Described as a Code Yellow, the internal disaster mode (no beds available in the hospital), is regarded even more drastic than a Code Black (hospital being full).

An Illawarra Shoalhaven Local Health District statement has refuted claims of a Code Yellow.

"Shoalhaven Hospital has been operating at a high level of occupancy, which we have managed through our usual escalation processes," a spokesperson said.

The South Coast Register has been told the hospital had been "inundated" with patients and was "at bursting point" with "no beds available anywhere in the hospital" for the best part of a week and staff were allegedly told to "deal with it".

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It is understood there was no one specific reason for the increased workload such as medical outbreaks etc, it was "just usual holiday incidents".

Wollongong Hospital was reportedly also suffering similar problems.

Shoalhaven Hospital Group Acting General Manager Brad Scotcher said the summer holidays were a traditionally busy period for the hospital, with an increase in visitors to the area.

"The District prepares for that increase through a number of strategies," he said.

"During these periods, we remind the local community and visitors to the area to remember the emergency department is for emergencies, and to consider attending a medical centre or GP, if their health complaint is not critical or life threatening."

The Register was told the hospital was so full the four-bed paediatric ward in the ED was actually occupied by adult patients.

Mr Scotcher said as with all public hospitals, NSW Health has strict protocols in place to ensure patients presenting to the ED were triaged and the most serious cases given priority.

"The District works as part of a network and has a clearly defined escalation process in place to respond to any peak in demand, similar to other health districts across NSW," Mr Scotcher said.

"This could see patients managed in other suitable areas of the hospital during peak periods, and it could see the hospital supported by the other facilities in the Shoalhaven and Illawarra regions."

NSW Ambulance personnel have also reported cases of bed block at the hospital with it not being unusual for staff to have to wait an hour to an hour and a half to transfer patients.

The ISLHD says it has increased its workforce by an additional 1231 full time equivalent staff - an increase of 26.4 per cent between mid-2012 and mid-2020.

That includes 214 more doctors, 507 more nurses and midwives, and 161 more allied health staff.

Mr Scotcher said Shoalhaven Hospital will also welcome 17 new Transition to Professional Practice (TPP) nurses next month.

Shoalhaven Hospital is set for a $434 million upgrade which will enhance clinical care across the hospital network and meet the needs of the growing Shoalhaven population.

However the NSW Government's own budget documents indicated a redeveloped hospital would not be completed until 2028.

Only $4 million was allocated in 2020/21 budget to plan for the redevelopment of Shoalhaven Hospital with Independent NSW MLC and Shoalhaven resident Justin Field and a working group of concerned locals suggesting a "new greenfield site south of Nowra" would be better than "redeveloping and expanding the current hospital location.